When individuals are to apply for ITIN Number, I ask them, when do you start filing your taxes? We suggest that you should do this as soon as possible even if the tax filing deadline is some time away. This will make things easier for both you and your chosen tax accountant. So what steps should you go through when doing your taxes? Here are the main ones.
Collect all required tax forms
Are you employed or self-employed? This is a very important question when you apply for ITIN Number. In the dormer case, your employer will be sending you your W-2 form in the month of January. The investment firm will also send you a 1099 form. The W-2 form contains details about your salary, benefits and income tax. The 1099 from outlines details about your stocks and bonds.
If you are self-employed, you will have to collect relevant forms from your contractors. And if you have a mortgage on your home, you lender wall also send you details about your loan.
When we apply for ITIN Number we go through all these documents carefully and make sure there are no errors. Should this be the case, obtain the correct versions at your earliest. When you file your taxes, you will have to submit all these forms, which is why you must be extremely careful about them.
Collect your bank statements
Your chosen tax accountant will need your bank statement for balancing your checkbook. The IRS may regard some of your deposits as income, which can increase your taxes. If you can give them a proof that this is not so and the deposit is a gift, you will be paying lower amounts. Your bank statement can do this, which is another reason why you must have it with you.
Set aside proof of your retirement contributions
Have you been contributing to a retirement account? We are sure you must already be doing this. Retirement account contributions are one of the most common deductions, which tax payers avail. Contribute as much as you can to these accounts; and try contributing to more than one plan.
With all retirement accounts, there are limits on the maximum contributions which you can make. For IRAs, this value is $5,500 and if your age is greater than 50, you can even contribute $6,500. While doing so, you have to provide a proof of this. Save the receipt for this purpose.
Obtain social security information
Did your family change in the last one year? Maybe you now have a spouse or you have kids to take care of. In both cases, you will require their social security details when you claim them as dependants. If they still do not have their social security numbers, apply for one as soon as you can.
In case, you are not eligible for social security number, you must apply for ITIN Number, which is the Individual Tax Identification Number. Your dependants must also apply for ITIN Number. The W7 form is required for this; you will have to submit this form with your tax return.
If you need more information about our accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.